One thing to take into consideration is that three of Dalaran's best wizards, Khadgar, Jaina, and Rhonin have had dealings with the Horde in the past. Also, Antonidas studied the effects of the orcs' lethargy extensively enough to know that they could be reasonable in the absence of their demonic bloodlust.W3Man 82 This could possibly explain why Dalaran could have dealings with the Horde, especially against a common enemy. Another factor to consider is that many Forsaken and blood elves were formerly citizens and even rulers of Dalaran.

The city contains areas that are faction-specific in the same manner as Shattrath City is divided amongst the Aldor and Scryers. Certain parts of the city can only be reached by Alliance players (Silver Enclave) while others are strictly for Horde use (Sunreaver's Sanctuary). The majority of the city remains neutral.

Evidently, the blue dragonflight, led by Malygos, has declared war on all mortal magic-users.<reference>Nexus War</reference> In response to this crisis, the city has been moved (likely with the bulk of the Kirin Tor and most available resources) to levitate high in the skies above Northrend. Dalaran today floats majestically above the Crystalsong Forest in defiance to the blue dragonflight as well as the forces of the Lich King in Icecrown — to the north of its location.

In-game, the city of Dalaran is a no-fly zone, with the exception of Krasus' Landing (where the flight point also happens to be) and the Underbelly. This is to help keep the feel of a well-populated city.